Congentra AG v Sixteen Thirteen Marine SA

Congentra AG v Sixteen Thirteen Marine SA

The charterers have a good arguable case for wrongful attachment under US federal maritime law, the cause of action has accrued as the exception to the prior favourable determination rule applies, there is a real risk of dissipation of assets by the owners justifying the continuation of the freezing injunction, and there was no material non-disclosure or misrepresentation by the charterers on the ex parte application. The owners' application to set aside the injunction is dismissed and the charterers' application to continue the injunction is allowed.

Parties
Claimant: CONGENTRA AG; Defendant: SIXTEEN THIRTEEN MARINE SA
Jurisdiction
England and Wales
Judgment Date
15 July 2008
Procedural Posture
Commercial Arbitration Related Application / Inter Partes Hearing for Continuation of Freezing Injunction and Application to Set Aside
Outcome
Owners' application to set aside the freezing injunction dismissed; charterers' application to continue the injunction allowed.
Legal Topics
Freezing Injunctions, Wrongful Attachment, Conflict of Laws, Malicious Prosecution in Civil Proceedings, Risk of Dissipation, Ex Parte Applications, Material Non Disclosure
Commercial Law Arbitration Private International Law Freezing Injunctions Wrongful Attachment Conflict of Laws Malicious Prosecution in Civil Proceedings Risk of Dissipation +2 more

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Parties

CONGENTRA AG

Claimant

SIXTEEN THIRTEEN MARINE SA

Defendant

Procedural Posture

Commercial Arbitration Related Application / Inter Partes Hearing for Continuation of Freezing Injunction and Application to Set Aside

Legal Issues

  1. 1 Whether the freezing injunction should be continued or set aside
  2. 2 Whether there is a good arguable case for wrongful attachment under the applicable law
  3. 3 Whether the cause of action for wrongful attachment has accrued

Ratio Decidendi

The charterers have a good arguable case for wrongful attachment under US federal maritime law, the cause of action has accrued as the exception to the prior favourable determination rule applies, there is a real risk of dissipation of assets by the owners justifying the continuation of the freezing injunction, and there was no material non-disclosure or misrepresentation by the charterers on the ex parte application. The owners' application to set aside the injunction is dismissed and the charterers' application to continue the injunction is allowed.

Court Disposition

Owners' application to set aside the freezing injunction dismissed; charterers' application to continue the injunction allowed.

Orders

  • Freezing injunction continued against the owners.
  • Court to hear parties as to the precise terms of the order going forward.